This letter is to provide you with advance notice of changes to Section S of the Minimum Data Set (MDS) in preparation for the implementation of MDS 3.0 on October 1, 2010.

The Centers for Medicare and Medicaid Services (CMS) continues to allow each state to collect information of specific interest in MDS Section S. The MDS 2.0 Section S contains seven items. Four items currently used for MDS 2.0 (S1, S2, S3 and S4) will be deleted for MDS 3.0. The remaining three items (S5, S6, and S7) identify residents who are eligible for specialty unit/facility Medicaid rate reimbursement, residents eligible for enhanced Medicaid rate reimbursement add-ons for specific conditions, and the primary payor. These items have been renumbered by CMS for MDS 3.0.

Please note, due to a software problem, CMS omitted the NYS-specific item S5 during the requested transition. Therefore, when MDS 3.0 is implemented on October 1, 2010 and continuing through March 31, 2011, item S5 will be referred to as S0520. Refer to the attached crosswalk for specific details related to those revisions. Beginning April 1, 2011, a new Section S item will be issued by CMS to collect specialty unit/facility reimbursement information. NYS-specific item S0520 will be eliminated at that time.

With the implementation of MDS 3.0, NYS will continue to employ the 53 Group RUG-III Classification System model version 5.20 for Medicaid reimbursement. Section Z (Assessment Administration) requirements are included in Attachment 4.

Please make a copy of this letter and its attachments to share with your MDS software vendors, MDS coordinators, and others in your facility. It remains the responsibility of each nursing home administrator to communicate this information to the appropriate persons. This letter, the revised form, instructions, Section S Crosswalk, and NYS Specific RUG Weights will be accessible under the MDS link at the Department of Health public website: www.nyhealth.gov/forms/.

Nursing home providers that use CMS Resident Assessment Validation and Entry (RAVEN) software for MDS processing must obtain the NYS-specific version of RAVEN. The CMS version of RAVEN will not collect NYS Section S. The NYS-specific version of the program will be posted on the NYS MDS Submission site and on the public website of the NYS Department of Health

Any questions regarding the requirements or specifications should be directed to Kathleen Minucci, R.N., MDS RAI Clinical Coordinator, or John Huffaker, MDS Automation Coordinator via the MDS Help Desk at Email: mds3@health.state.ny.us, Voice: (518) 408-1658 or Fax: (518) 408-1636.

Sincerely,

Jacqueline PappalardiDirector of Residential ServicesOffice of Long Term Care